Network_Design
Network_Design
Mon 13/09/2021 - 21:45

SUPPLY CHAIN NETWORK CHALLENGES AND BENEFITS: THE IMPACT OF GOOD NETWORK LOCATION DESIGN

Good supply chain network location design can truly provide significant cost savings and enhance customer service. It can also help identify and solve many types of supply chain challenges as well as deliver benefits to all stakeholders.

At GEODIS, we feel strongly about this topic, so much so that we’ve created a comprehensive guide about it titled, How Network Location Design Will Revolutionize Your Supply Chain. You can download the guide here in its entirety.

But first, and to provide you a preview of some of the guide’s content, following is a snapshot concerning the various challenges and benefits that are impacted by good network location design: 

Managing the shift towards e-Commerce

  • Providing options for faster distribution and delivery on e-Commerce and omnichannel purchases.
  • Competing with large e-Commerce retailers like Amazon that are building their own delivery networks.
  • Allowing for better stock management and inventory routing to support both traditional and Online sales.

Implementing cost reductions and gaining visibility into expenses

  • Getting much greater insight into CapEx and operating costs, both in specific parts of the supply chain and across the endtoend network.
  • Understanding carrier rates and optimizing routes and logistics providers to reduce costs.
  • Optimizing storage and distribution to allow for better load consolidation, use of costeffective, rightfit multimodal transport, and getting closer to the customer.

Meeting changing consumer demands

  • Providing faster distribution between supply chain nodes and reducing time for lastmile delivery.
  • Reducing logistics costs resulting in lower shipping charges for customers.
  • Demonstrating a more ethical supply chain that reduces or eliminates environmental damage and carbon footprints and supports sustainability.
  • Putting customer service frontandcenter.

Mitigating risks within the supply chain

  • Understanding how a variety of locations allows for easier rerouting and flexibility due to external factors.
  • Building adaptable, resilient supply chains that provide contingencies against unforeseen events.
  • Working with suppliers, manufacturers, and logistics providers across multiple locations to ensure preparedness.
  • Reducing emissions and waste in the supply chain to meet sustainability compliance and regulations.
  • Identifying and resolving the root causes of locationbased issues.
  • Reducing the potential for late shipments and faulty or damaged goods.
  • Understand the impact of congestion and disruption at ports and other supply chain nodes.

“A largescale disruption to port operations typically results in shifting import timelines and the need to move goods to alternate ports, thereby leading to spikes in traffic and difficulty securing resources for transportation… To meet fallout due to port disruptions, we suggest that retailers adopt diversified strategies to prepare for all contingencies: Sourcing decisions, inventory management, and alternate routing strategy.” — Mitigating Supply Chain Risk: Planning Around Port Disruptions (Cognizant white paper)1

Enhancing partnership relationships through the supply chain

  • Getting transparency into how goods move through the supply chain including delays and bottlenecks.
  • Optimizing handoffs and handovers between supply chain partners.
  • Balancing changing demand and capacity with partners throughout the network, allowing for better forecasting and inventory management.
  • Ensuring that locationbased improvements are baked into service level agreements with partners.

While network location design is only one part of the supply chain puzzle, it provides an essential foundation for further strategic, tactical, and operational improvements.

To learn more, we encourage you to download our free guideHow Network Location Design Will Revolutionize Your Supply Chain — which will help our industry partners take a deeper dive into analyzing their network.

And that’s not all. GEODIS is also offering a complimentary consultative network location design . . . a $10,000+ value! Click here to learn more about this excellent opportunity to utilize the GEODIS team of experts to craft a customized supply chain network design for your organization.

References:

1Mitigating Supply Chain Risk: Planning Around Port Disruptions.” Cognizant white paper. https://www.cognizant.com/InsightsWhitepapers/Mitigating-Supply-Chain-Risk-Planning-Around-Port-Disruptions-codex1344.pdf

Author: Staci Bowman

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